Eventually the process of capital deepening comes to a halt as depreciation catches up with total saving
Indicate whether the statement is true or false
TRUE
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The first example of comparative advantage appeared in a book that was published in 1817. This example showed that mutually beneficial trade between two countries (England and Portugal) was possible
The example assumed that two goods (wine and cloth) could be produced by both countries. Which of the following describes the conclusion of this example? A) England had an absolute advantage in both wine and cloth, but a comparative advantage in wine. B) Portugal had a comparative advantage in both wine and cloth, but its advantage in cloth was greater. C) Portugal had a comparative advantage in wine and England had a comparative advantage in cloth. D) England had a comparative advantage in both wine and cloth, but its advantage in cloth was greater.
If there is a shortage in the market for athletic shoes,
a. the price should rise to eliminate the shortage b. inventories of athletic shoes will grow c. demand will decrease to restore equilibrium d. firms will reduce production to restore equilibrium e. supply will increase to restore equilibrium
The main problem with using the infant industries argument to justify protecting an industry from foreign competition is that:
a. all industries will claim that they are infant industries in order to gain protection. b. the protected industry will become too efficient and drive out foreign competition. c. once in place, it is difficult to remove protection even as the industry matures. d. it causes the goods that are produced in the protected industry to have lower prices. e. this policy compromises national security if the infant industry produces military goods.
It is stated that, in democracy, every vote counts. To be a contentious voter in a democracy, one should
A. spend some time learning about the issues. B. find out about the positions of the candidates. C. be sure to vote. D. all of these answer options are correct.